Overview of Dormant Accounts Fund
(DAF)
Support Event – Financial Guidance
Capital Projects
January 2016
OVERVIEW
 Project
Budget
 Payment of Grant Aid
 Financial Reporting
Eligibility of Expenditure
Public Procurement & Tendering
Partner Reporting
Audits
 Statutory and Other Compliance Information
PROJECT BUDGET SECTION 1.6 GRANT AGREEMENT.
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Varying your budget – discretion to make changes up to €2,000 on
individual budget lines under capital costs. Section 11 Key
Requirements.
One opportunity to make more significant changes to the budget
must be requested and approved in writing by Pobal. These will be
considered with you’re April 2016 return.
Costs are only eligible from between the beginning and end dates
of your Grant Agreement. Any costs incurred prior to grant
agreement date or after the grant agreement date are not eligible
for funding.
PAYMENT OF GRANT AID – SECTION 3.2 GRANT AGREEMENT
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The Dormant Accounts Fund instalment values are based on the
specific measure and the value of your grant. (Key Requirements
Section 6).
First payments generally vary between 90% and 60%.
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Prior to First Payment : Evidence of co-funding i.e. bank statement.
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Final 10% payment is retrospective and is based on the following:
 Receipt and approval of all reporting i.e. final financial return and
final progress report.
 All cheque payments must appear on bank statements as cashed.
No Cash Payments. Outstanding cheques are not deemed as
eligible expenditure.
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FINANCIAL REPORTING REQUIREMENTS – SECTION 7 KEY
REQUIREMENTS
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Expenditure Returns: 1st return is April 2016, 2nd December 2016
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An on-line reporting system is currently being developed, further
guidance will be issued in March/April 2016.
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Completed on-line financial return comprises of:
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Payments Journal from commencement date to 30th April
Copy Invoices required for all capital costs along with relevant
bank statements from which payment has occurred.
Architects Certificates where applicable are required for
projects between €20,000 and €100,000.
Total project costs to be reported included co-funding. All
expenditure is governed by guidelines/key requirements.
FINANCIAL REPORTING
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Please note the percentage (%) of Professional fees associated directly
with the build/refurbishment are capped at 10% of the total project costs
(i.e. Architect, Valuation and Building and Energy Rating).
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Capital grants cannot be used for operational purposes. All payments
must be through the bank i.e. cheque, direct debit etc.
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Cash payments to suppliers are not eligible
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Possible requests as part of the risk review process sample procurement
documentation i.e. quotes. See Annex 111 Declaration Grant Agreement
CAPITAL PROJECT REQUIREMENTS
The following information must be retained on file for inspection by the
Department and Pobal in relation to Building Costs, Additions and
Refurbishment.
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Full / Final Planning Permission document and planning reference number.
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Deeds of property if you are the owner/Lease management agreement if not
the owner.
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Retention of use: for building works greater than €50,000 a letter of
retention of use for 10 years post the end of the project.
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All Capital Invoices.
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Architects Certificates: where applicable for amounts between €20,000 and
€100,000
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Second Hand Equipment: Letter on file confirming that the item was not
funded previously through any other public/EU grant.
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Obtain Tax Clearance Access Number (TCAN) and Tax Reference Number
(TRN) for all cumulative payments in excess of €10,000 in any 12 month
period.
GRANTEES AND PARTNER ORGANISATIONS
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The Grantee is the company that holds the Pobal grant agreement and is
the Lead Partner. They have full responsibility for reporting to Pobal all
financial expenditure and reporting of progress and to deliver on activities
and outputs of the project.
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It is strongly recommended that a written agreement is in place between
the Grantee and the partner organisation(s) outlining organisational roles
and responsibilities and the reporting requirements of partner
organisations e.g.
EXPENDITURE RETURNS PROCESS
Pobal reviews completed
return
Queries.
Pobal informs Grantee of any issues, these
must be addressed within 10 working days.
Queries not addressed
by Grantee within 10
working days.
Queries expenditure is
rejected and cannot be
reclaimed.
No Queries
Queries addressed by Grantee
within 10 working days
Payment authorised by
Pobal
Review completed
system updated
ELIGIBILITY OF EXPENDITURE
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Proof of expenditure is always required: therefore, expenditure must be
supported by receipted invoices or accounting documents together with
bank statements. There must be a proven link with the projects activities,
and a clear audit trail for each type of expenditure.
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Documentation to be submitted/retained to support expenditure claimed:
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Equipment not exceeding €1,000: quotes, asset register, location of asset.
INELIGIBLE EXPENDITURE
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Examples of costs that are not eligible for funding under the Dormant
Accounts Fund.
Bank interest/Fines/Penalties/foreign exchange commissions
Indirect overheads other than those that have been approved in advance per
your grant agreement. Section 1.6
Cash payments other than through petty cash
Redundancy costs / litigation fees
Entertainment, gift vouchers, rewards, bonuses
Lump sum transfers which are not for specific items of expenditure
Payments not supported by original documentation i.e. invoices etc.
VAT paid on invoices, if your organisation is VAT registered and in a position
to claim the VAT from Revenue
Opportunity or Notional costs
Outstanding cheques i.e. cheques not cashed through bank account.
All payments must be based on Real Costs, incurred and paid to 3rd party suppliers
(i.e. not related parties). - No profit element within the payment.
PROCUREMENT AND TENDERING
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Section 13 Key Requirements
A high priority is placed on compliance with procurement procedures so it
is essential that not only are correct procedures followed but that back up
documentation to this effect is retained to verify this.
You are responsible for compliance with the public procurement
procedures and must ensure rules on procurement are strictly adhered to.
Failure to comply may result in expenditure being declared ineligible.
Guidelines are available at www.etenders.gov.ie
Additional information is available from the Office of Government
Procurement www.procurement.ie
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IF IN DOUBT , SEEK ADVICE.
PROCUREMENT & TENDERING – THRESHOLDS APPLIED.
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It is imperative that you familiarise yourself with the full requirements of
the public procurement guidelines.
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Public Procurement requires that all purchases must be open to fair
competition and are transparent.
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Diagram.
VERIFICATION AND AUDIT
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Various bodies including Pobal, the Department of Environment, and their
agents have a right of access at all reasonable times to enter on any
property owned by the funded organisation and to inspect and take
photocopies of all records relating directly or indirectly to the grant.
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WHATS THE PROCESS:
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An audit report is issued to the Chairperson / Board or Directors.
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Response required to clarifications / queries.
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One of two things occur:
1) Audit deemed complete and satisfactory
or
2)Ineligible spend refunded or sanction may apply.
STATUTORY AND OTHER COMPLIANCE
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Grantees are required to comply with Statutory Regulations.
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Data Protection compliance - Data Protection Commission their website
is www.dataprotection.ie
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Freedom of Information - Further information www.foi.gov.ie
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Pobal will hold records about your organisation and these will be subject
to FOI requests. Should you consider certain information to be
commercially sensitive, confidential or of a personal nature and not
subject to FOI you must identify the information and specify the reasons
for its sensitivity.
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Child Protection Guidelines.